Consol: good growth from glass in previous five months

In a trading statement on the five months to the end of November 2005, South Africa“s Consol Limited said that consumer demand within key market segments was positive, contributing to increases of 12…

In a trading statement on the five months to the end of November 2005, South Africa“s Consol Limited said that consumer demand within key market segments was positive, contributing to increases of 12.3% and 10.9% respectively for group volume and revenue, compared to the prior period. In spite of the slightly lower revenue growth resulting from a change in sales mix, Consol“s operating profit margin is in line with the prior year. The company said its glass division showed good growth in all major categories for the period with volumes up 12.8% on the prior period. Revenue increased by 13.4% with product mix changes partially limiting the impact of sales price increases, which were in the range of 2% to 3%. Volume and revenue at the plastics division, representing 9.7% of group revenue, were down by 7.9% and 12.4% respectively on the prior period. Consol said the general consensus is that consumer demand will remain buoyant in line with GDP growth and that, as a consequence, key market segments, specifically the beverage and food industries, are expected to generate growth. Wine export growth may be lower than anticipated, partly because of a strong rand, increased competitor activity and global wine surpluses. Given that market demand fundamentals remain sound, business prospects are expected to remain positive, the group concluded.